Japan Coincident Index Slips to 3-Month Low

2026-10-07 05:03 By Farida Husna 1 min. read

Japan’s coincident economic index, a key gauge of current economic conditions based on indicators including industrial production, employment and retail sales, fell to 118.7 in August 2026 from a final 120.6 in the prior month, preliminary data showed.

The reading was the lowest since May, reflecting the impact of natural disasters and disruptions stemming from the situation in the Middle East.

Despite the monthly decline, the economy continued to recover moderately, supported by improving employment and income conditions and recent government policy measures that boosted private consumption.

Business investment also picked up, although firms remained cautious about the outlook.

Meanwhile, the Bank of Japan kept its short-term policy rate at 1.0% in July, the highest since September 1995, while signaling scope for further rate hikes as underlying inflation approaches 2% and financial conditions remain supportive.



News Stream
Japan Coincident Index Slips to 3-Month Low
Japan’s coincident economic index, a key gauge of current economic conditions based on indicators including industrial production, employment and retail sales, fell to 118.7 in August 2026 from a final 120.6 in the prior month, preliminary data showed. The reading was the lowest since May, reflecting the impact of natural disasters and disruptions stemming from the situation in the Middle East. Despite the monthly decline, the economy continued to recover moderately, supported by improving employment and income conditions and recent government policy measures that boosted private consumption. Business investment also picked up, although firms remained cautious about the outlook. Meanwhile, the Bank of Japan kept its short-term policy rate at 1.0% in July, the highest since September 1995, while signaling scope for further rate hikes as underlying inflation approaches 2% and financial conditions remain supportive.
2026-10-07
Japan Coincident Index Confirmed at Highest Since 2018
Japan’s coincident economic index, a key gauge of current economic conditions based on indicators including industrial production, employment and retail sales, stood at 120.6 in July 2026, matching the flash reading and reaching its highest level since October 2018. The result pointed to a solid recovery in economic activity, supported by government measures to contain fuel and oil price increases linked to Middle East tensions, alongside a new fiscal policy framework aimed at balancing growth with budget sustainability. Meanwhile, the Bank of Japan kept its short-term policy rate at 1.0% in July, its highest level since September 1995, while judging risks to economic activity to be broadly balanced.
2026-09-29
Japan Coincident Index Highest Since 2018
Japan's coincident economic index, a key gauge of current economic conditions based on indicators such as industrial production, employment, and retail sales, rose to 120.6 in July 2026 from a final 118.9 in the previous month, preliminary data showed. It was the highest reading since October 2018, pointing to a solid recovery in economic activity, supported in part by government measures to curb fuel and oil price spikes amid Middle East tensions, as well as a new fiscal policy framework aimed at balancing growth with budget sustainability. Meanwhile, the Bank of Japan kept its short-term policy rate at 1.0% in July, its highest level since September 1995, while judging risks to economic activity to be broadly balanced.
2026-09-07